By FXEmpire.com
Analysis and Recommendations:
The USD/CAD has bounced back in today’s session, trading at 0.9959. In Canada unemployment numbers shocked the markets. Forecasts called for the addition of 7k new jobs, but the actual report showed that there were 58.2k jobs created. This helped the Looney gain some strength.
The timing was very opportune, as it coincided with the release of US consumer sentiment data, which showed that consumers were more satisfied currently then they had been since 2008, this might have something to do with the drop in crude prices, which directly affects the price at the pumps.
As investors began to gain confidence to move to slightly more risk the CAD was at the right time and place. Markets did not seem to mind that the unemployment jumped at the same time. A bit confusing. Next week the CAD faces many challenges with a lot of eco data due. (See charts below)
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Economic Data Released May 11, 2012 actual v. forecast
|
GBP |
Nationwide Consumer Confidence |
44 |
52 |
53 |
|
CNY |
Chinese CPI (YoY) |
3.4% |
3.3% |
3.6% |
|
CNY |
Chinese PPI (YoY) |
-0.7% |
-0.5% |
-0.3% |
|
CNY |
Chinese CPI (MoM) |
-0.1% |
-0.2% |
0.2% |
|
CNY |
Chinese Fixed Asset Investment (YoY) |
20.2% |
20.5% |
20.9% |
|
CNY |
Chinese Industrial Production (YoY) |
9.3% |
12.0% |
11.9% |
|
CNY |
Chinese Retail Sales (YoY) |
14.1% |
15.2% |
15.2% |
|
EUR |
German CPI (MoM) |
0.2% |
0.1% |
0.1% |
|
EUR |
German CPI (YoY) |
2.1% |
2.0% |
2.0% |
|
GBP |
PPI Input (MoM) |
-1.5% |
-1.0% |
1.7% |
|
GBP |
PPI Input (YoY) |
1.2% |
1.9% |
5.6% |
|
EUR |
Portuguese CPI (MoM) |
0.30% |
1.20% |
|
|
USD |
Core PPI (MoM) |
0.2% |
0.2% |
0.3% |
|
CAD |
Employment Change |
58.2K |
7.0K |
82.3K |
|
USD |
PPI (MoM) |
-0.2% |
0.0% |
0.0% |
|
CAD |
Unemployment Rate |
7.3% |
7.0% |
7.2% |
|
USD |
PPI (YoY) |
1.9% |
2.1% |
2.8% |
|
USD |
Core PPI (YoY) |
2.7% |
2.8% |
2.9% |
|
USD |
Michigan Consumer Sentiment |
77.8 |
76.2 |
76.4 |
Upcoming Economic Events that affect the CAD and USD
|
May 16 |
13:30 |
CAD |
Manufacturing Sales (MoM) |
-0.30% |
|
May 17 |
13:30 |
CAD |
Foreign Securities Purchases |
12.50B |
|
13:30 |
CAD |
Wholesale Sales (MoM) |
1.6% |
|
|
May 18 |
13:30 |
CAD |
Core CPI (MoM) |
0.3% |
|
13:30 |
CAD |
CPI (MoM) |
0.4% |
|
|
13:30 |
CAD |
CPI (YoY) |
1.9% |
Government Bond Auctions (this week)
Date Time Country
May 14 08:30 Spain
May 14 09:10 Italy
May 14 09:10 Slovakia
May 14 09:10 Norway
May 14 09:30 Germany
May 14 10:00 Norway
May 15 09:30 Belgium
May 15 09:30 UK
May 16 08:50 France
May 16 09:10 Sweden
May 16 09:30 Germany
May 16 09:50 France
May 16 14:30 Sweden
May 17 08:30 Spain
May 17 15:00 US
May 17 17:00 US
Originally posted here
